SAIL ties up USD 350 million ECB from SBI -Governance Now

SAIL ties up USD 350 million ECB from SBI

SAIL intends to use the commercial borrowing to meet expenditure on capital schemes

GN Bureau | September 15, 2017

#Steel Authority of India #SBI

Steel Authority of India Ltd (SAIL) has tied up an external commercial borrowing (ECB) of USD 350 million with State Bank of India (SBI) for a tenure of seven years.

The Maharatna enterprise wants to use the commercial borrowing, which has been arranged by SBI from its Hong Kong branch, towards meeting expenditure on capital schemes including modernisation and expansion.

SAIL is in the final leg of completing its modernisation projects, wherein it aims to diversify its product basket with more value added products and ready to use products customised to the market demands.

It has tied the ECB at the lowest possible spread and the overall cost would work out cheaper than that applicable coupon on term loans and bonds for similar period. This re-emphasises the lenders confidence in the credit worthiness of the company.

SAIL is taking various management initiatives to enhance its operational excellence and overall productivity, performance and products.

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